Australia’s trading platforms have been gathering data to determine which stocks have caught the attention of Aussie investors this quarter. eToro noted AI companies were generating high interest, with the tech rally having a significant impact. Plus500 (LON:PLUSP) noted the Australian dollar as their most traded instrument, followed by natural gas and oil.
So, let’s take an in depth look at what Aussie investors are doing.
eToro: Retail investors back AI
The second quarter of 2023 saw Australian retail investors backing AI-focused stocks in full force, while globally, retail investors turned to Manchester United as expectations of a potential sale of the club rose.
Despite the fluctuating market, the loyalty of retail investors to big tech paid off, with the sector making further gains in Q2.
eToro's analysis focused on companies witnessing the highest proportional change in holders from the end of Q1 to the end of Q2, along with the top ten most widely held stocks on their platform in Australia.
Leading the list of widely held stocks in Australia were Tesla Inc (NASDAQ:NASDAQ:TSLA), Apple Inc (NASDAQ:NASDAQ:AAPL), and Amazon.com (NASDAQ:AMZN).Inc, all of which recorded significant increases in share prices this year, including a year-to-date increase of 131% for Tesla. Other noteworthy performances included NVIDIA, with a 193% increase in share price, and Meta, at 76%.
Stocks are most widely held by eToro users in Australia, and their position last quarter.
AI-related companies featured prominently among the top gainers, reflecting retail investors' intent to capitalise on the growing popularity of this sector. Australian eToro users holding NVIDIA Corp (NASDAQ:NVDA) shares saw a quarter-on-quarter increase of 7.5%, while Intel Corporation (NASDAQ:NASDAQ:INTC) experienced a 6.7% increase in Australian holders following the announcement of its AI computing chip set for a 2025 launch.
Internationally, Manchester United experienced a 21% surge in holders during Q2, indicating global retail investors' anticipation of potential gains from the club's expected sale.
eToro market analyst Josh Gilbert said: "The significant tech rally this year has primarily benefited retail investors, allowing them to outperform most institutional investors. The top ten most widely held stocks on our platform include the 'magnificent seven' tech stocks. It's no surprise that investors are gravitating towards the AI leader, Nvidia. Its remarkable 50% gain during the quarter, along with one of the largest surprises in Q2 revenue forecasts Wall Street has seen, made it a favourite among investors."
On the other end of the spectrum, there were stocks that lost their lustre. Meituan Class B topped the fallers list, losing nearly 18% of its holders on eToro's Australian platform during Q2. AMC pref also lost 5.9% of its Australian investors.
Stocks that have seen the biggest proportional increase and decrease in holders on the eToro Australia platform quarter on quarter.
Commenting on these trends, Gilbert added: "Meituan topping the list of stocks losing holders last quarter is reflective of the disappointment in China's local economy's recovery, with China's stock market being one of the worst performers last quarter. Meanwhile, investors continue to show their love for tech, adjusting their portfolios by reducing their stakes in heavyweights like Meta and Netflix (NASDAQ:NFLX)."
Plus500: Tesla tops the trades
In the realm of CFD trading in Australia, the Australian dollar and Tesla have emerged as the most traded instrument and share, respectively. This revelation comes from Plus500's recent +Insights data, covering the period from May 1, 2022, to April 30, 2023.
The comprehensive data, gleaned from Plus500's innovative trading feature, +Insights, offers a unique view into the trading preferences of users on Plus500's CFD platform over the past year.
From May 2022 to April 2023, Australian traders have shown a marked preference for the Australian dollar as their most traded instrument, followed by natural gas and oil. Tesla, meanwhile, took the lead as the most traded share, with Apple and Amazon taking the second and third positions, respectively.
A close examination of the ten most actively traded shares in Australia during the last year shows a clear bias towards mining companies. These companies take up three of the top ten positions and are the only Australian firms to make the cut.
Plus500's most traded instruments.
The top ten Australian stocks comprise three mining firms – Pilbara Minerals Ltd (ASX:PLS), BHP (ASX:BHP) Group Ltd (LSE:BHP, ASX:BHP) (AU), and Fortescue Metals Group (ASX:ASX:FMG) Ltd; two automobile entities – Tesla and NIO; two technology behemoths – Apple and Meta (formerly Facebook (NASDAQ:META)); two energy businesses – Orron Energy and Uniper; and one consumer discretionary company – Amazon.
Australian investors demonstrate a strong preference for indexes and currencies, which occupy seven spots in the most traded instruments, with two energy commodities (natural gas and oil) and one CFD (gold) rounding out the list.
When comparing the most traded instruments in the United Kingdom, Australia, Germany, Italy, and the Netherlands, it's clear that Australia has unique trading tendencies. From May last year to April 30, Australia was the only country out of the five to rank AUD/USD, Australia 200, USD/JPY, Pilbara Minerals, Orron Energy, BHP Group, and Fortescue Metals among its top ten.
Furthermore, Australian traders show a more significant interest in currencies than their counterparts in other countries, with currencies occupying three of the top ten spots, compared to only one or two in other nations.